The Indonesian rupiah hovered around IDR 17,730 per U.S. dollar on the first trading day of September, little changed from the previous session, as investors assessed a mix of domestic indicators. Annual inflation quickened to 3.19% in August from July’s three-month low of 2.28%, coming in slightly above expectations but remaining within Bank Indonesia’s target range.
Externally, Indonesia recorded a small trade surplus in July, defying forecasts for a deficit and halting a two-month streak of trade gaps, as exports rose more than expected. At the same time, newly appointed Bank Indonesia Governor Destry Damayanti emphasized that policy would prioritize stability and economic growth, and stressed that closer coordination with the government would not undermine the central bank’s independence.
Fiscal performance stayed robust through July, with state revenue climbing 21.3% year-on-year and government spending increasing 18.2%. On the global front, the U.S. dollar index was steady, supported by hawkish comments from Chair Kevin Warsh and a rise in oil prices.
